Hotel Grand Central

[ngcheeki]

FY 2011 will likely be a record year in term of top line(revenue). In Q3 2011, the revenue is already $120.589 million versus
FY 2010 revenue of $142.142 million. FY 2011 revenue will most probably exceed S$160 millions contributed partly by the ruby world championship in New Zealand.

FY 2011 EPS is likely be 7 cents and Dividend will most probably be 4 cents or around 5.26% similar to last 2 years 2009 and 2010 probably comes in the choice of scrip dividend or cash as well.

3Q 2011:
NAV = $1.29
Price to Book based on last closing price of ($0.76) = 0.5875

vested

[portuser]

Ngcheeki
Your estimate of 7c EPS may be optimisstic because included in Q3 $15.5m profit is $7.7m, which is the difference between the insurance payout and the costs of the damaged properties in Christchurch.
On the other hand, Q3 profit was affected by the $2.2m exchange loss. In Q4, stronger Aussie dollar might have resulted in exchange gain instead.

---

I wonder how the rest feel about the loss of revenue and its impact on profit when the hotel near Orchard Road is pulled down for constructing two new hotels.

[Nick]

http://info.sgx.com/webcoranncatth.nsf/V...300317346/$file/HGC_FSANNOUNCEMENT.pdf?openelement

Dividends increased to 5.0 cents per share. Orchard Hotel to be redeveloped in late 2012.

[Sfsh12]

With the demolishment of the Orchard road hotel, total revenue (and likely profits) is expected to be lower over the next two years or so. On the other hand, after the completion of the rebuild of the Orchard road hotel, the value of this property is likely to be enhanced.

How should an investor view this period of lower profitability but with the prospects of improvement in the assets?
Why was the dividend increased although near term future revenue (and likely profitability) is expected to be lower?

[propertyinvestor]

With the demolishment of the Orchard road hotel, total revenue (and likely profits) is expected to be lower over the next two years or so. On the other hand, after the completion of the rebuild of the Orchard road hotel, the value of this property is likely to be enhanced.

How should an investor view this period of lower profitability but with the prospects of improvement in the assets?
Why was the dividend increased although near term future revenue (and likely profitability) is expected to be lower?

Thats why Hotel Grand Central waited till it hit a net cash position before commencing redevelopment works.

Ive compared both St****** and Hotel Grand Central and decided that St****** is junk.

Im now vested in this instead.

Regret not buying this when it was 74c.

[freedom]

With the demolishment of the Orchard road hotel, total revenue (and likely profits) is expected to be lower over the next two years or so. On the other hand, after the completion of the rebuild of the Orchard road hotel, the value of this property is likely to be enhanced.

How should an investor view this period of lower profitability but with the prospects of improvement in the assets?
Why was the dividend increased although near term future revenue (and likely profitability) is expected to be lower?

Thats why Hotel Grand Central waited till it hit a net cash position before commencing redevelopment works.

Ive compared both St****** and Hotel Grand Central and decided that St****** is junk.

Im now vested in this instead.

Regret not buying this when it was 74c.

how many value traps are you holding now?

Koh Bros, SingHoldings, ChipEngSeng, Wing Tai, plus this one, how many more?

[greengiraffe]

http://info.sgx.com/webcoranncatth.nsf/V...A0029BF86/$file/HGCAnnAwardofMainContract.pdf?openelement

Total costs of redevelopment is S$130m. With the Kramat Road flagship last revalued @ S$185m in 2009, I somehow worked out the impending write-off (non cash) demolition of existing building at S$75m, leaving remaining land worth S$110m.

So with total value of S$240m for 752 rooms in prime Orchard Road - around S$320k per key, there should be more revaluation surplus on Hotel Grand just on this redevelopment alone.

[Boon]

The 9-level 400 guest rooms hotel to be demolished has an old wing (with freehold land title) and a new wing (with leasehold land title). And it is going to be replaced by 2 new hotels.

1) A 10-storey, 264 rooms hotel on the freehold land and
2) A 10-storey, 488 rooms hotel on the leasehold land.

There will be 752 rooms, 352 more when fully completed and operational.

[money]

With the demolishment of the Orchard road hotel, total revenue (and likely profits) is expected to be lower over the next two years or so. On the other hand, after the completion of the rebuild of the Orchard road hotel, the value of this property is likely to be enhanced.

How should an investor view this period of lower profitability but with the prospects of improvement in the assets?
Why was the dividend increased although near term future revenue (and likely profitability) is expected to be lower?

Thats why Hotel Grand Central waited till it hit a net cash position before commencing redevelopment works.

Ive compared both St****** and Hotel Grand Central and decided that St****** is junk.

Im now vested in this instead.

Regret not buying this when it was 74c.

how many value traps are you holding now?

Koh Bros, SingHoldings, ChipEngSeng, Wing Tai, plus this one, how many more?

haha i think he's also into hobee

[Curiousparty]

Who will use the hotels in a deep recession?

The 9-level 400 guest rooms hotel to be demolished has an old wing (with freehold land title) and a new wing (with leasehold land title). And it is going to be replaced by 2 new hotels.

1) A 10-storey, 264 rooms hotel on the freehold land and
2) A 10-storey, 488 rooms hotel on the leasehold land.

There will be 752 rooms, 352 more when fully completed and operational.